Nokia's stock hits 16 year low after report of Lumia 900 problems and Q1 earnings

Nokia's stock hits 16 year low after report of Lumia 900 problems and Q1 earnings
In a stark contrast to Apple's ever-rising stock, Nokia's equity is taking a hit on Wednesday to a 16 year low. This morning, Nokia's common stock was trading at $4.38 on the NYSE for a drop of almost 13%. The Finnish-based handset manufacturer is being assaulted on three sides. First, the $100 rebate it is giving buyers of the Nokia Lumia 900 through April 21st essentially makes the flagship model free. As we told you, a software problem has been discovered on the model which prevents users from connecting to the internet. Nokia will roll out a fix on April 16th and those who purchased the phone can install the new software or swap their unit for a new one.

Also affecting the stock is Nokia's Q1 earnings report which we reported to you earlier today. The report contained a warning about margins for the next quarter which is leading stockholders to sell their Nokia shares. Finally, a bearish story about Nokia on the Wall Street Journal's widely read online site could be catching the eye of investors.

The WSJ piece notes that the problems that Nokia is having on the high-end trying to compete with Apple and Android models is being repeated in its low-end markets in India, the Middle East, Africa and China. The financial paper notes that low priced featurephones for those regions have been Nokia's "bread and butter" and cheap Android models from ZTE and Huawei are taking that low hanging fruit away from the Finnish company. Gartner's industry analyst Roberta Cozza saud, "We’re seeing that many consumers on emerging markets are shifting towards low-end true smartphones, rather than feature phones, and Nokia doesn’t have much to offer in this space."

The WSJ story ends with the ominous thought that Nokia will need to compete against iOS and Android with cheaper Windows Phone models, in "a quicker pace" than anticipated.

source: WSJ


Related phones

Lumia 900
  • Display 4.3" 480 x 800 pixels
  • Camera 8 MP / 1.3 MP front
  • Processor Qualcomm Snapdragon S2 APQ8055, Single core, 1400 MHz
  • Storage 16 GB
  • Battery 1830 mAh(8h 3G talk time)

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26 Comments

1. phonton

Posts: 65; Member since: Dec 27, 2011

Nokia Lumia 900 must be expected to produce some good results in Q2. Come on Nokia make it to all big carriers so that it reaches more people. All the best! Want some good competition in US! Put an end to duopoly. People need more choices :)

2. -box-

Posts: 3991; Member since: Jan 04, 2012

In short, probably a good time to buy

5. pookiewood

Posts: 631; Member since: Mar 05, 2012

good idea!

10. Veigald

Posts: 290; Member since: Jan 13, 2012

Indeed. Cheap stock that has great prospect in a two year term. Hard to believe that stock brokers are some of the smartest people around when you see this reaction to what everyone should know.

3. ryq24

Posts: 875; Member since: Oct 17, 2011

when i bought my N8, i had it replaced after only 3 days of use. my sister-in-law bought a C7 and had it replaced after 2 days. now, the problem with lumia 900 shows nokia have not learn its lesson. these never happen with htc desire s that i bought or the samsung galaxy w my sister bought.

8. -RVM-

Posts: 331; Member since: Oct 19, 2011

It was just your bad lack. I had/have 3 Nokia smartphones in last 2 years and they were/are all ok. My uncle got his iPhone 4S few weeks ago and had to replace it on second day.

18. andro.

Posts: 1999; Member since: Sep 16, 2011

We certainly had a few faulty n8 and C7 phones back to the shop and the lumia 800 hasn't proven to be without its own faults we have had several returns despite its low sales volumes

4. ajac09

Posts: 1482; Member since: Sep 30, 2009

yeah after Nokia said years ago that Americans were to dumb for smart phones I hope they barely make a dent in the American market.

7. -RVM-

Posts: 331; Member since: Oct 19, 2011

Nokia never said that. Stop spreading bs.

6. Tre-Nitty

Posts: 470; Member since: Nov 16, 2010

Nokia should've not gone exclusive to windows phone. They shouldn't have shut android out. Btw, the lumia 900 is one ugly phone.

11. Veigald

Posts: 290; Member since: Jan 13, 2012

Yeah, you just took the word out of everyone's mouth right there. Ugliest phone ever, no?

13. CharlieAtInfinity

Posts: 253; Member since: Apr 10, 2012

I don't really like the looks of Lumia 900 too I bought a Samsung omnia 7, much happier!!

21. eyephone

Posts: 69; Member since: Apr 05, 2012

And it's to thick, and all plastic.... instead of Steel or aluminium.... it should be slimmer!

9. FoneAddict

Posts: 263; Member since: Jul 05, 2011

Not looking good for Nokia. How the Mighty have fallen. I still can't believe why they partnered with Microsoft when Google's Android offers so much more. I hope Nokia turn this around but as long as they stay with Microsoft I simply can't see how they can do this within such a constricted ecosystem that is Windows Mobile.

22. eyephone

Posts: 69; Member since: Apr 05, 2012

That's right.

12. Wolves11

Posts: 10; Member since: Mar 21, 2012

The 900 is a ugly phone? wow, so you just called almost every major review critic a idiot! Because almost eveyone praised the phone design and look. But all are free to their opinion no doubt, but please if this phone is ugly, what phone do you find attractive?

14. Veigald

Posts: 290; Member since: Jan 13, 2012

Let me guess: ZTE Fury. That's a true marvel in the art of design :P

15. gharatnikhil

Posts: 11; Member since: Dec 29, 2011

@tri netty may be you liked the designs of the cheap plastic andro stuff look at the marvel piece i bet no one can give the lumia just only a one look its a design on which one will stare and cheer! So f**k off your design choice no one cares what you like

16. ron1niro

Posts: 54; Member since: Mar 28, 2012

After a storm, there is a calm. The comment on how the mighty have fallen is just hilarious! So people think nokia is going to fall? I don't think so

24. dangchitrung

Posts: 89; Member since: Apr 04, 2012

You think people think No-kick is going to fall. IT IS at the bottom now but still digging down, dude. No, its not what we PEOPLE think. Its what we have seen.

17. networkdood

Posts: 6330; Member since: Mar 31, 2010

I find the Lumia to be a beautiful design....

25. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

I liked the design, but I found the HTC Titan to be better built, and had a better feel to it

19. Tre-Nitty

Posts: 470; Member since: Nov 16, 2010

@gharatnikhil, you mad because the lumia is ugly and it's a flop. Don't get mad at me woman. The phone is ugly plain and simple IMO. See dummy, IMO is the key.

20. eyephone

Posts: 69; Member since: Apr 05, 2012

True! Agree!

23. joey18

Posts: 666; Member since: Jul 20, 2010

Nokia goes turtle steps why go for windows when android is more popular the lumia is nice but not to stay 2 years in contract

26. vgs21

Posts: 1; Member since: Apr 12, 2012

One and ONLY option left for Nokia if it wants to compete and survive, "GO FOR ANDROID NOKIA & leave WIN OS".

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